Better Capital said in a statement
it had bought the secured debt and a 90 per cent stake of the high-end fashion brand, which saw it profits fall by two-thirds last year as the downturn on the British high street took its toll.

The British chain, which operates from 50 standalone shops and 70 concessions within department stores, made a profit before tax of £772,000 in the year to February 2011, down from £2.22m in the previous year. Revenue fell 10pc to £94m.

Trading was hit by provisions for the retailer's five loss-making shops, as well as the impact of bad weather in the UK in December 2010.

Jaeger was established in 1884 and today designs and sells menswear in addition to its traditional womenswear ranges, which are shown at London Fashion Week. The brand was most recently in the spotlight for designing the new staff uniforms at Kensington Palace.

The company released the following statement today: 'The Board is pleased that Jaeger has a new owner in Better Capital, thereby securing the future of the business. The investment that Better Capital has provided will create a strong foundation on which to further develop our iconic brand.'

Mr Tillman, the chairman of the British Fashion Council, made his fortune in the rag trade. He took a majority investment in Jaeger in 2002, recruiting former Debenhams chief executive Belinda Earl to run the business two years later. The pair bought the Aquascutum brand in 2009.

Ms Earl stepped down as chief executive of Jaeger and Aquascutum for health reasons last month.